Monthly pro formaYear 1
ADU add-onYear 1 after the ADU is rented
Tax write-offsDepreciation & cost segregation
Standard depreciation vs. cost segregation
Year by year with cost segregation
Estimates only, not tax advice — confirm with a CPA before relying on them. Federal uses bonus depreciation on 5- and 15-year property; California doesn't allow bonus depreciation and doesn't recognize REPS. Recapture is approximate: 5-year property at ordinary rates, the rest at up to 25% federally, all at the CA rate. A 1031 exchange defers recapture. Capital gains tax and the 3.8% NIIT aren't included. CapEx reserve isn't deductible until spent.
SensitivityMonthly cash flow at different prices and rents
Outlined cell is the current deal. Use this to see how much of a price cut or rent bump it takes to hit your target.
10-year projection
Property tax grows at the lesser of your expense growth or 2%/yr (Prop 13). PMI drops once the loan reaches 78% of purchase price. Equity is after selling costs. Excludes depreciation and income-tax effects.